The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, announced a record volume trading day on Monday, March 16. A record $3.195 billion were traded across all AFX products, surpassing the previous record of $3.035 billion traded on September 19, 2019. This marks a 5.27 percent increase from the previous record.
In addition, the number of outstanding contracts – open interest - held in the AMERIBOR futures complex reached a record 1,032 contracts. This is equal to $10.91 billion in notional value. In March, the ADV is 244 contracts with a notional value of $2.67 billion. This is a 146 percent increase from the fourth quarter of 2019.
The AFX facilitates the determination of AMERIBOR, a transaction-based interest rate benchmark for regional, community and mid-sized banks via its electronic trading platform. Since the start of the AFX and the AMERIBOR benchmark, more than $840 billion in value has been transacted and continues to rise. Average daily volume in March is $2,276 billion and continues to surpass previous levels. .
“We are pleased that our volume continues to grow, but more importantly, that we are able to be a source of liquidity in these turbulent times,” Richard L. Sandor, Chairman and CEO of AFX said. “By using the AMERIBOR benchmark for peer-to-peer lending and to price their loans, banks are able to more efficiently serve their customers.
“Despite the current market conditions and instability in equity and commodity markets, the AFX has performed flawlessly,” Sandor added. “Volumes are at record highs while volatility is low. There have been no price abnormalities or dislocations, the trading range has remained stable within a tight band, and the AMERIBOR benchmark continues to be a reliable source of liquidity through an efficient, transparent and rules-based market.”
Currently the AFX has over 180 members across the U.S. that includes banks, insurance companies, broker-dealers, private equity firms, hedge funds, futures commission merchants, and asset managers.
For more information about AFX or AMERIBOR, visit www.ameribor.net.